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Ch 35: ORELA Business Education: Basics of Microeconomics

About This Chapter

Refresh your understanding of the basics of microeconomics by reviewing the lessons in this chapter. Having a firm grasp on the concept of microeconomics will help prepare you for any related questions on the ORELA Business Education exam.

ORELA Business Education: Basics of Microeconomics - Chapter Summary

The ORELA Business Education exam will test your comprehension of the fundamentals of microeconomics, which are important for understanding the field of business. This chapter develops the basics of microeconomics, with attention given to the following:

  • Types of economics
  • Economics' circular flow
  • Microeconomic resources
  • Opportunity cost
  • Production possibilities model and production possibilities curve
  • Marginal unity, marginal opportunity cost, and marginal cost
  • Free market competition

These lessons are developed by an expert in the field of economics who will guide you through the content at a reasonable pace. You may view the lessons in the form of brief videos, and/or you may read their accompanying transcripts to gather as much information as possible. Following your study of each lesson, you can also take the related interactive quiz, which will help you measure how well you comprehend the information you've just reviewed. Use the dashboard feature on each lesson to track your progress throughout this chapter.

ORELA Business Education: Basics of Microeconomics - Chapter Objectives

The ORELA Business Education exam assesses your candidacy for licensure in Oregon to teach business education courses. The 150 question multiple-choice test has content divided between five domains, with 19% focused on the field of economics. One of the primary objectives of the economics domain is to exhibit a strong comprehension of the essential principles of microeconomics, which is the main focus of this chapter. Carefully studying these lessons and taking their associated quizzes will give you a confidence in your ability to answer any pertinent microeconomics questions on the exam.

10 Lessons in Chapter 35: ORELA Business Education: Basics of Microeconomics
Test your knowledge with a 30-question chapter practice test
What is Economics? - Definition & Types

1. What is Economics? - Definition & Types

Few things affect the day-to-day lives of everyone more than the economy. In this lesson, you'll learn about economics, including some of its foundational topics and concepts. You'll also have a chance to take a quiz after the lesson.

Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

2. Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

Learn about the simple model used to describe where money goes and what it is exchanged for in a market economy. The circular flow model of economic activity shows you the basic relationships between households, firms and the government.

Microeconomic Resources: Scarcity & Utility

3. Microeconomic Resources: Scarcity & Utility

For economics to work, we must assume that resources are scarce and that people will work to secure the greatest utility possible. This lesson explains both scarcity and utility and what they mean for people everywhere.

Opportunity Cost: Definition & Real World Examples

4. Opportunity Cost: Definition & Real World Examples

Learn the most important concept of economics through the use of real-world scenarios that highlight both the benefits and the costs of decisions. Opportunity cost is a simple yet powerful principle that reveals how to make the best economic decisions possible, and it explains why people make the choices they do.

Applying the Production Possibilities Model

5. Applying the Production Possibilities Model

Producers in the economy use a visual model, called the production possibilities curve, to make the most efficient production decisions and maximize output. Learn how this model reveals the tradeoffs of every production decision with the simplified example of an economy that produces only two goods.

Shifts in the Production Possibilities Curve

6. Shifts in the Production Possibilities Curve

In this lesson you will learn how changes inside an economy lead to changes in the production possibilities of a nation. See how different scenarios from everyday life lead to shifts in the production possibilities curve.

Diminishing Marginal Utility: Definition, Principle & Examples

7. Diminishing Marginal Utility: Definition, Principle & Examples

Diminishing marginal utility is an important concept in economics and helps explain consumer demand. In this lesson, we will explore this topic, look at some real-world examples, and end with a quiz.

Marginal Opportunity Cost: Definition & Formula

8. Marginal Opportunity Cost: Definition & Formula

This lesson reviews marginal opportunity costs. Marginal opportunity costs are explained and illustrated in two easy-to-understand examples with real-life applications.

Marginal Cost: Definition, Equation & Formula

9. Marginal Cost: Definition, Equation & Formula

Marginal cost is an important concept in business. In this lesson, you'll learn what marginal costs are and their standard formula with some illustrative examples. A short quiz follows the lesson.

Competition Within Free Markets: Types & Summary

10. Competition Within Free Markets: Types & Summary

We live in a free market economy, but that doesn't mean there is always free competition. In this lesson, you'll learn about perfectly competitive markets, monopolies, monopolistic markets and oligopolies.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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Other Chapters

Other chapters within the ORELA Business Education: Practice & Study Guide course

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